Amplify Trading Global Markets Review - 7th August 2019

Amplify Trading Global Markets Review - 7th August 2019

Today's Highlights

  • RBNZ cuts 50 bbp surprising dovish expectations

  • Recession fears loom amid trade war uncertainty

  • Oil DoE data highlight surprise build in Gasoline and Crude

Macro Review

Not a whole lot has changed from last Monday as traders remain concerned about the latest escalation of tensions behind the US and China, with it increasing the chances of falling into a recession. Therefore, risk-off continues to be the prevailing sentiment, with stocks not too far off from Monday's low and safes heavens on the front foot fulled by recent dovish action by Central Banks from New Zeland and India. Treasuries hit new highs with the 30-year US debt close to the all-time low reached in July 2016. Interestingly. the odds of a 50 bbp cut from the FED in September is now up at 32.7% vs the previous 23% and it will be interesting if the next FED minutes will hint more aggressive cuts coming. 

North American Indices traded negative after a relatively subdued session. SP500 remains above its 200 DMA. The rest of the European indices traded positive, amid trades profit tacking after major areas of support were hit. 

The FX complex traded choppy, amid major outflows from EM currencies, but not major inflows into G10 USD pairs.

Crude drops below the 53 level amid bearish inventories data and recession fears.Gold extends gains breaking above the1500 mark.

Global yields touch record lows amid safe heaven inflow

EU Close

If you missed the morning briefing from the desk click HERE

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